FxWirePro- USDCAD Daily Outlook

Intraday bias - Bullish

USDCAD regained above 1.3000 despite strong Canadian retail sales data. It rose 1.1% in June compared to an estimate of 0.40%. Core retail sales are expected to drop by 0.20% in Jul. Hawkish 50 bpbs rate hike by Fed in coming months supporting pair at lower levels. Markets eye US flash manufacturing PMI and durable goods order data for further direction. Technically in the 4-Hour chart, the pair is holding above the short-term( 21- EMA),  55- EMA, and the long-term moving average of 200 EMA (1.28815). Any jump above 1.3020 confirms the intraday bullish trend. A jump to 1.3080/1.3145 is possible. USDCAD hits a high of 1.30191 at the time of writing and is currently trading around 1.30025.

WTI crude oil pared some of its gains made the previous week on recession fears. Any breach below $85 confirms further bearishness.

The near-term support is around 1.2960, any breach below targets 1.2900/1.2870.

Indicators (4 Hour chart)

CCI (50)- Bullish

ADX- Neutral

It is good to buy on dips around 1.2960-625 with SL around 1.2900 for TP of 1.3080.